Telecom Italia (TIT) investor relations material

Executive summary

• Revenues for H1 2026 rose to €6.83 billion, up between 2% and 3.5% year-over-year, with EBITDA After Lease up 1.2%, driven by improved profitability in Q2 and normalization of MVNO impacts.

• Net profit attributable to owners in Q2 was €88 million, reversing prior losses, while H1 2026 saw a net loss of €204 million, including €25 million from discontinued operations.

• Major capital structure actions included share capital reduction, conversion of savings shares, a 1-for-10 reverse stock split, and the completion of the first tranche of a share buyback program.

• The group received a €1 billion reimbursement for the 1998 License Fee, positively impacting net financial position and cash flow.

• Guidance for 2026 and 2027 is confirmed, with ongoing transformation and growth in both domestic and Brazilian markets.

Financial highlights

• Group revenues reached €6.83 billion (+2% organic, +3.5% reported); domestic revenues were stable at €4.55 billion, while Brazil grew 6% to €2.29 billion.

• Group EBITDA After Lease was €1.79 billion (+1.2% year-over-year); domestic EBITDA After Lease declined 2.5% to €933 million, while Brazil rose 5.5% to €862 million.

• Equity Free Cash Flow After Lease for H1 was €650 million, a significant improvement from -€121 million in H1 2025, reflecting the license fee reimbursement.

• Adjusted Net Financial Debt After Lease stood at €7.29 billion at June 30, 2026, with net leverage at 1.94x.

• Group investments totaled €863 million (12.6% of revenues), with €482 million in Domestic and €381 million in Brazil.

Outlook and guidance

• Guidance for 2026 and 2027 is confirmed, with growth trends in line with market objectives and performance on track to meet targets.

• Sale of Sparkle to Boost BidCo expected to close by Q3 2026, pending regulatory approvals.

• Management notes some projects may have different deployment timelines, and supplier relationship changes could affect performance, though these are considered unlikely.